Brocade's CEO Michael Klayko to step down
Brocade CEO Michael Klayko said on Thursday that he would resign from the vendor despite its strong second quarter.
The company did not disclose the reason why Klayko, who has led the San Jose, Calif.-based vendor since 2005, is leaving the company now. He will continue in his CEO position until the company's board of directors finds a replacement and completes a necessary transition.
"Decisions like these are never easy, but I believe it is the right time," Klayko said in a release announcing his intention to leave. "The Company is in a great position financially, and our product pipeline will continue to strengthen and clearly separate Brocade from other networking providers."
The board said it has formed a search committee and will work with a headhunting firm to find the best candidate to "lead the next phase of Brocade's growth."
His departure comes amidst a strong quarter.
On Thursday, Brocade reported that revenues for the three months that ended in July were $555.3 million, up 10 percent from the same period last year and 2 percent on a sequential basis. Earnings per share were $0.09, up from break-even EPS in Q3 2011.
One of the key markets where Brocade has been thriving is the Fibre Channel over Ethernet (FCoE) market segment. As of Q1 2012, overall Fibre Channel market revenues, according to Dell'Oro's Q1 2012 quarterly report, surpassed $476 million.
- see the release
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